II 

118TH CONGRESS 

2D SESSION S. 4005 

To amend the Internal Revenue Code of 1986 to allow an investment credit 

for certain domestic infant formula manufacturing projects and to allow 

a domestic production credit for certain infant formula. 

IN THE SENATE OF THE UNITED STATES 

MARCH 20, 2024 

Mr. CASEY (for himself and Mr. HEINRICH) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to allow an 

investment credit for certain domestic infant formula 

manufacturing projects and to allow a domestic production credit for certain infant formula. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Infant Formula Made 

5 in America Act of 2024’’. 


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1 SEC. 2. DOMESTIC INFANT FORMULA MANUFACTURING IN2 VESTMENT CREDIT. 

3 (a) IN GENERAL.—Subpart E of part IV of sub4 chapter A of chapter 1 of the Internal Revenue Code of 

5 1986 is amended by inserting after section 48E the fol6 lowing new section: 

7 ‘‘SEC. 48F. DOMESTIC INFANT FORMULA MANUFACTURING 

8 INVESTMENT CREDIT. 

9 ‘‘(a) IN GENERAL.—For purposes of section 46, in 

10 the case of an eligible taxpayer, the domestic infant for11 mula manufacturing credit for any taxable year is an 

12 amount equal to 30 percent of the qualified investment 

13 for such taxable year. 

14 ‘‘(b) QUALIFIED INVESTMENT.— 

15 ‘‘(1) IN GENERAL.—For purposes of this sec16 tion, the qualified investment for any taxable year is 

17 the basis of eligible property placed in service by the 

18 taxpayer during such taxable year which is part of 

19 a qualifying infant formula manufacturing project. 

20 ‘‘(2) CERTAIN QUALIFIED PROGRESS EXPENDI21 TURES RULES MADE APPLICABLE.—Rules similar to 

22 the rules of subsections (c)(4) and (d) of section 46 

23 (as in effect on the day before the enactment of the 

24 Revenue Reconciliation Act of 1990) shall apply for 

25 purposes of this section. 


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1 ‘‘(3) LIMITATION.—The amount which is treat2 ed as the qualified investment for all taxable years 

3 with respect to any qualifying infant formula manu4 facturing project shall not exceed the amount des5 ignated by the Secretary as eligible for the credit. 

6 ‘‘(c) DEFINITIONS.—For purposes of this section— 

7 ‘‘(1) ELIGIBLE TAXPAYER.— 

8 ‘‘(A) IN GENERAL.—For purposes of this 

9 section, the term ‘eligible taxpayer’ means a 

10 taxpayer if such taxpayer’s total global revenue 

11 for the calendar year that precedes the calendar 

12 year in which the taxpayer submits an applica13 tion under subsection (d)(1)(A) does not exceed 

14 $750,000,000. 

15 ‘‘(B) AGGREGATION RULES.—For purposes 

16 of this paragraph, all persons which are treated 

17 as a single employer under subsections (a) and 

18 (b) of section 52 shall be treated as a single 

19 taxpayer. 

20 ‘‘(2) QUALIFYING INFANT FORMULA MANUFAC21 TURING PROJECT.—The term ‘qualifying infant for22 mula manufacturing project’ means a project, any 

23 portion of the qualified investment of which is cer24 tified by the Secretary under subsection (d) as eligi25 ble for a credit under this section, which re-equips, 


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1 expands, or establishes a facility for the manufac2 ture of eligible infant formula. 

3 ‘‘(3) ELIGIBLE PROPERTY.—The term ‘eligible 

4 property’ means any property— 

5 ‘‘(A) which is necessary for the manufac6 ture of eligible infant formula, 

7 ‘‘(B) which is— 

8 ‘‘(i) tangible personal property, or 

9 ‘‘(ii) other tangible property (not in10 cluding a building or its structural compo11 nents), but only if such property is used as 

12 an integral part of a facility described in 

13 paragraph (2), and 

14 ‘‘(C) with respect to which depreciation (or 

15 amortization in lieu of depreciation) is allow16 able. 

17 ‘‘(4) ELIGIBLE INFANT FORMULA.—The term 

18 ‘eligible infant formula’ means infant formula that— 

19 ‘‘(A) may lawfully be sold in the United 

20 States, and 

21 ‘‘(B) is manufactured in the United States. 

22 ‘‘(d) CERTIFICATION.— 

23 ‘‘(1) IN GENERAL.— 

24 ‘‘(A) ESTABLISHMENT.—Not later than 

25 180 days after the date of the enactment of this 


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1 section, the Secretary shall establish a quali2 fying infant formula manufacturing project pro3 gram to consider and award certifications for 

4 qualified investments eligible for credits under 

5 this section to qualifying infant formula manu6 facturing projects. 

7 ‘‘(B) APPLICATION PERIOD.—Each appli8 cant for certification under this paragraph shall 

9 submit an application— 

10 ‘‘(i) certifying that not less than 50 

11 percent of the eligible infant formula man12 ufactured using the eligible property to 

13 which such application relates during the 

14 1-year period beginning on the date on 

15 which the qualifying infant formula manu16 facturing project is placed in service shall 

17 be sold for use in the United States, and 

18 ‘‘(ii) containing such information as 

19 the Secretary shall require. 

20 ‘‘(C) TIME TO MEET CRITERIA FOR CER21 TIFICATION.—Each applicant for certification 

22 shall have 1 year from the date of acceptance 

23 by the Secretary of the application during 

24 which to provide to the Secretary evidence that 


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1 the requirements of the certification have been 

2 met. 

3 ‘‘(D) PERIOD OF ISSUANCE.—An applicant 

4 which receives a certification shall have 3 years 

5 from the date of issuance of the certification in 

6 order to place the project in service and if such 

7 project is not placed in service by that time pe8 riod, then the certification shall no longer be 

9 valid. 

10 ‘‘(2) LIMITATIONS.— 

11 ‘‘(A) PROJECT AMOUNT.—The amount of 

12 credit that may be allocated under paragraph 

13 (1) shall not exceed $150,000,000. 

14 ‘‘(B) AGGREGATE AMOUNT.—The total 

15 amount of credits that may be allocated under 

16 paragraph (1) shall not exceed $750,000,000. 

17 ‘‘(C) SUNSET.—The Secretary may not al18 locate any credit dollar amount with respect to 

19 any project that commences construction after 

20 the date that is 10 years after the date of the 

21 enactment of this section. 

22 ‘‘(3) REVIEW AND REDISTRIBUTION.— 

23 ‘‘(A) REVIEW.—Not later than 4 years 

24 after the date of enactment of this section, the 


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1 Secretary shall review the credits allocated 

2 under this section as of such date. 

3 ‘‘(B) REDISTRIBUTION.—The Secretary 

4 may reallocate credits awarded under this sec5 tion if the Secretary determines that— 

6 ‘‘(i) there is an insufficient quantity 

7 of qualifying applications for certification 

8 pending at the time of the review, or 

9 ‘‘(ii) any certification made pursuant 

10 to paragraph (1) has been revoked pursu11 ant to paragraph (1)(B) because the 

12 project subject to the certification has been 

13 delayed as a result of third party opposi14 tion or litigation to the proposed project. 

15 ‘‘(C) REALLOCATION.—If the Secretary de16 termines that credits under this section are 

17 available for reallocation pursuant to the re18 quirements set forth in subparagraph (B), the 

19 Secretary is authorized to conduct an additional 

20 program for applications for certification. 

21 ‘‘(4) DISCLOSURE OF ALLOCATIONS.—The Sec22 retary shall, upon making a certification under this 

23 subsection, publicly disclose the identity of the appli24 cant and the amount of the credit with respect to 

25 such applicant. 


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1 ‘‘(e) RECAPTURE.— 

2 ‘‘(1) IN GENERAL.—If during the recapture pe3 riod there is a recapture event, then the tax imposed 

4 by this chapter for the taxable year in which such 

5 recapture period ends shall be increased by the sum 

6 of— 

7 ‘‘(A) the aggregate decrease in the credits 

8 allowed to the taxpayer under section 38 for all 

9 prior taxable years which would have resulted if 

10 no credit had been determined under this sec11 tion with respect to the qualifying infant for12 mula manufacturing project, plus 

13 ‘‘(B) interest at the underpayment rate es14 tablished under section 6621 on the amount de15 termined under subparagraph (A) for each 

16 prior taxable year for the period beginning on 

17 the due date for filing the return for the prior 

18 taxable year involved. 

19 ‘‘(2) RECAPTURE EVENT.—For purposes of this 

20 subsection, the term ‘recapture event’ means— 

21 ‘‘(A) a failure by the taxpayer to meet the 

22 requirements of the certification made by the 

23 taxpayer under subsection (d)(1)(A)(i), or 

24 ‘‘(B) any property with respect to which an 

25 allocation was made under this section ceases to 


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1 be eligible property which is part of a qualifying 

2 infant formula manufacturing project. 

3 ‘‘(3) RECAPTURE PERIOD.—For purposes of 

4 this subsection, the term ‘recapture period’ means 

5 the 1-year period beginning on the date on which a 

6 qualifying infant formula manufacturing project 

7 with respect to which an allocation is made under 

8 this section is placed in service. 

9 ‘‘(4) NO DEDUCTION FOR INTEREST.—No de10 duction shall be allowed under this chapter for inter11 est described in paragraph (1)(B). 

12 ‘‘(5) SPECIAL RULES.— 

13 ‘‘(A) TAX BENEFIT RULE.—The tax for 

14 the taxable year shall be increased under para15 graph (1) only with respect to credits allowed 

16 by reason of this section which were used to re17 duce tax liability. In the case of credits not so 

18 used to reduce tax liability, the carryforwards 

19 and carrybacks under section 39 shall be appro20 priately adjusted. 

21 ‘‘(B) NO CREDITS AGAINST TAX.—Any in22 crease in tax under this subsection shall not be 

23 treated as a tax imposed by this chapter for 

24 purposes of determining the amount of any 


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1 credit under this chapter or for purposes of sec2 tion 55. 

3 ‘‘(f) COORDINATION WITH REHABILITATION CRED4 IT.—The qualified investment with respect to any quali5 fying infant formula manufacturing project for any tax6 able year shall not include that portion of the basis of any 

7 project which is attributable to qualified rehabilitation ex8 penditures (as defined in section 47(c)(2)). 

9 ‘‘(g) REGULATIONS.—The Secretary shall issue such 

10 regulations or other guidance as may be necessary or ap11 propriate to carry out the purposes of this section, includ12 ing regulations providing for the appropriate conversion 

13 of quantities of liquid concentrate eligible infant formula 

14 to pounds of dry eligible formula.’’. 

15 (b) INCLUSION IN INVESTMENT CREDIT.—Section 46 

16 of such Code is amended in paragraph (6) by striking 

17 ‘‘and’’, in paragraph (7) by striking the period and insert18 ing ‘‘, and’’, and by adding at the end the following new 

19 paragraph: 

20 ‘‘(8) the domestic infant formula manufacturing 

21 investment credit.’’. 

22 (c) CREDIT MADE TRANSFERABLE.—Section 

23 6418(f)(1) of such Code is amended by adding at the end 

24 the following new clause: 


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1 ‘‘(xii) The domestic infant formula 

2 manufacturing investment credit deter3 mined under section 48F.’’. 

4 (d) ELECTIVE PAYMENT OF CREDIT.—Section 

5 6417(b) of such Code is amended by adding at the end 

6 the following new paragraph: 

7 ‘‘(13) The domestic infant formula manufac8 turing investment credit determined under section 

9 48F.’’. 

10 (e) CERTAIN NONRECOURSE FINANCING EXCLUDED

11 FROM CREDIT BASE.—Section 49(a)(1)(C) of such Code 

12 is amended by striking ‘‘and’’ at the end of clause (vii), 

13 by striking the period at the end of clause (viii) and insert14 ing ‘‘, and’’, and by adding at the end the following new 

15 clause: 

16 ‘‘(ix) the basis of any eligible property 

17 (as defined in section 48F(c)(3)) which is 

18 part of a qualifying infant formula manu19 facturing project under section 48F.’’. 

20 (f) CLERICAL AMENDMENT.—The table of sections 

21 for subpart E of part IV of subchapter A of chapter 1 

22 of such Code is amended by inserting after the item relat23 ing to section 48E the following new item: 

‘‘Sec. 48F. Domestic infant formula manufacturing investment credit.’’. 

24 (g) EFFECTIVE DATE.—The amendments made by 

25 this section shall apply to projects the construction of 


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1 which commences after the date of the enactment of this 

2 Act. 

3 SEC. 3. INFANT FORMULA PRODUCTION CREDIT. 

4 (a) IN GENERAL.—Subpart D of part IV of sub5 chapter A of the Internal Revenue Code of 1986 is amend6 ed by adding at the end the following new section: 

7 ‘‘SEC. 45BB. INFANT FORMULA PRODUCTION CREDIT. 

8 ‘‘(a) IN GENERAL.—In the case of a qualified tax9 payer, for purposes of section 38, the infant formula pro10 duction credit for any taxable year is an amount equal 

11 to the product of— 

12 ‘‘(1) the amount in pounds (determined con13 sistent with regulations issued under section 48F(g) 

14 with respect to liquid concentrate) of eligible infant 

15 formula manufactured by such taxpayer and sold for 

16 use in the United States during such taxable year, 

17 multiplied by 

18 ‘‘(2) $2. 

19 ‘‘(b) QUALIFIED TAXPAYER.—For purposes of this 

20 section, the term ‘qualified taxpayer’ means, with respect 

21 to a taxable year— 

22 ‘‘(1) a taxpayer if such taxpayer’s total global 

23 revenue for the preceding taxable year does not ex24 ceed $750,000,000, or 


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1 ‘‘(2) a taxpayer to whom a credit was allowed 

2 under this section in the preceding taxable year. 

3 ‘‘(c) ELIGIBLE INFANT FORMULA DEFINED.—For 

4 purposes of this section, the term ‘eligible infant formula’ 

5 has the meaning given such term in section 48F. 

6 ‘‘(d) LIMITATIONS.— 

7 ‘‘(1) MAXIMUM AMOUNT OF FORMULA.—For 

8 purposes of determining the amount of the credit 

9 under subsection (a), the amount of eligible infant 

10 formula determined under subsection (a) with re11 spect to any taxable year shall not exceed 

12 18,000,000 pounds. 

13 ‘‘(2) 5-YEAR LIMITATION.—No credit shall be 

14 allowed under subsection (a) to a taxpayer for a tax15 able year unless— 

16 ‘‘(A) no credit has been allowed to such 

17 taxpayer in any prior taxable year, or 

18 ‘‘(B) such taxable year occurs during the 5 

19 taxable year period beginning on the first day 

20 of the first taxable year for which a credit was 

21 allowed under subsection (a) to such taxpayer. 

22 ‘‘(e) AGGREGATION RULES.—For purposes of this 

23 section, all persons which are treated as a single employer 

24 under subsections (a) and (b) of section 52 shall be treated 

25 as a single taxpayer. 


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1 ‘‘(f) COORDINATION WITH INVESTMENT CREDIT.— 

2 Infant formula produced at a facility with respect to which 

3 a credit was allowed under section 48F shall not be taken 

4 into account for purposes of subsection (a).’’. 

5 (b) CREDIT MADE TRANSFERABLE.—Section 

6 6418(f)(1) of such Code (as amended by section 2) is 

7 amended by adding at the end the following new clause: 

8 ‘‘(xiii) The infant formula production 

9 credit determined under section 45BB.’’. 

10 (c) ELECTIVE PAYMENT OF CREDIT.—Section 

11 6417(b) of such Code (as amended by section 2) is amend12 ed by adding at the end the following new paragraph: 

13 ‘‘(14) The infant formula production credit de14 termined under section 45BB.’’. 

15 (d) CREDIT ALLOWED AS PART OF GENERAL BUSI16 NESS CREDIT.—Section 38(b) of such Code is amended 

17 by striking ‘‘plus’’ at the end of paragraph (40), by strik18 ing the period at the end of paragraph (41) and inserting 

19 ‘‘, plus’’, and by adding at the end the following new para20 graph: 

21 ‘‘(42) the infant formula production credit de22 termined under section 45BB(a).’’. 

23 (e) CLERICAL AMENDMENT.—The table of sections 

24 for subpart D of part IV of subchapter A of the Internal 


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1 Revenue Code of 1986 is amended by adding at the end 

2 the following new item: 

‘‘Sec. 45BB. Infant formula production credit.’’. 

3 (f) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to formula manufactured after the 

5 date of the enactment of this Act. 

Æ 


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